Strong sales of cement and fertiliser boosted Kenya's ARM Cement's pretax profit 20 percent to 1.2 billion shillings ($13.68 million) in the first-half, it said on Friday.
Total revenue jumped 16 percent to 7.6 billion shillings, after sales of cement rose by 10 percent and by more than a third in Kenya and Tanzania respectively, ARM said, attributing it to an improved distribution network.
"The east African regional economies are growing briskly, and demand for cement, as well as the other products are expected to grow further," the company said.
Its fertilizer line also posted good sales growth after the Kenyan ministry of agriculture endorsed one of its brands.
ARM said it expects earnings to grow further in the second half mainly due to improving margins driven by investments in its factories in Tanzania and Kenya.
ARM has invested a total of 15 billion shillings in a clinker plant in Tanga, Tanzania and a cement plant in the capital of Dar es Salaam.
Both plants have a combined capacity of 1.8 million tonnes per year. The investments in ARM's production plants helped the earnings before interest, taxes, depreciation and amortisation (EBITDA) to hold steady at 24 percent in the first-half, defying pressure from higher costs of inputs like energy.
Its earnings per share rose by 21 percent to 3.4 shillings.
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